" Bad news !! But not for Gold :) "

>> Sunday, December 13, 2009

Gold investment...sounds simple ? Let's have a look then..
Why you want to invest in gold?
Protect yourself against inflation, deflation, stock market weakness and potential currency problems -- in other words, to hedge financial uncertainties.

When should i buy gold?
"When you need it". We cannot approach gold the way we approach other investment. TIMING is not important.Is the matter of do you need to own gold. Buy when prices are low, sell for high. Common mistake made by most is to wait the price to drop.Set yourself an aim to get in at 10% of bottom,to give you better return.Dont wait too long as you will miss the opportunity.

What influnce the gold price?
1. Supply and demand, just like anything else.When people want to buy gold,its price rise.Growing prosperity of the major Asian countries, particularly
India and China has well support gold price.People has been accumulate bullion or coins, as national or personal reserve.
2. Changes in sentiment.
a.Economic situation ~ Bull Market >price drop; Bear Market >price rise. During economic downturn, investor sell their investment and lock their money in gold, as gold can retains it value over very long term. In contrast, smart investor will sell gold, invest in people and business get back again in the dynamic creation of wealth.

b.Suspect Currency ~ drive up gold price.
When people dont fell confident with their currency, they convert it to gold for devaluation protection.

c.National crisis ~ lead to prise rise.
People fear that their assets may be seized and that the currency may become worthless. They see gold as a solid asset which will always buy anything. Thus in times of great uncertainty, particularly when war is feared, the demand for gold rises.

In the sum of all, just remember " Bad news !! But not for Gold :) "

0 comments:

Post a Comment

  © Blogger template Simple n' Sweet by Ourblogtemplates.com 2009

Back to TOP